Where does the Modi and Musk meeting leave Starlink’s India plans?

(Originally posted on : Invezz )

During his US visit, Indian Prime Minister Narendra Modi met with SpaceX and Tesla CEO Elon Musk to explore expanding technological collaboration between India and the United States.

:Prime Minister and Mr. Musk discussed strengthening collaboration between Indian and US entities in innovation, space exploration, artificial intelligence, and sustainable development,” India’s ministry of external affairs said in a release.

“Their discussion also touched on opportunities to deepen cooperation in emerging technologies, entrepreneurship and good governance,” it added.

While no details of the meeting’s agenda were provided, reports indicate that discussions primarily revolved around Tesla’s investment plans and Starlink’s long-pending entry into India.

At a joint press conference following the meeting, US President Donald Trump remarked that he was unsure of the exact purpose behind the meeting but speculated that Musk “wants to do business in India.”

According to an Economic Times report which has cited sources, PM Modi and Musk met to prepare a “bilateral roadmap for enhancing technology partnership”. 

The meeting is understood to have focussed on Tesla’s investment plans for India and Starlink’s entry into the country, besides India’s policies on AI, the report said.

“Musk is understood to have sought lower tariffs on imported EVs, getting an early license for Starlink to offer satellite internet services in India, and expanding SpaceX’s collaboration with ISRO,’ it said.

Starlink’s regulatory battle in India

Starlink, SpaceX’s satellite internet division, has been eager to launch operations in India.

The Indian government has expressed support for assigning spectrum rather than auctioning it, aligning with Musk’s preference.

However, despite this backing, Starlink’s license remains under regulatory scrutiny.

The Telecom Regulatory Authority of India (TRAI) was initially expected to finalize its spectrum allocation guidelines by December 2024, but the process has been delayed, leaving uncertainty over when Starlink can officially launch services in the country.

Domestic telecom providers, including Reliance Jio and Bharti Airtel, have strongly opposed allowing foreign satellite companies like Starlink and Amazon’s Kuiper to enter India without undergoing a spectrum auction, arguing that such a move would put local firms at a disadvantage.

With India’s satellite services market projected to grow at a rate of 36% per year and reach $1.9 billion by 2030, the stakes are high for Starlink as well as other players.

Security concerns after Starlink devices found with smugglers

Starlink’s troubles in India have deepened after its communication devices were discovered in the possession of drug traffickers and insurgents.

In a major operation in the Andaman & Nicobar Islands, authorities seized Starlink terminals used by Myanmar-based smugglers to create Wi-Fi hotspots for navigation.

The Indian Ministry of Home Affairs and the Department of Telecommunications have demanded details on the original buyers of these devices.

However, Starlink has refused to share user information, citing data privacy laws.

A government official confirmed to ET last month that the Ministry of Home Affairs has instructed telecom authorities to take “appropriate steps” to address the issue.

Starlink has been in discussions with the DoT and MHA, seeking clarification regarding the regulatory obstacles it faces while continuing to request permission to operate in India.

The government has indicated that it will not grant Starlink permission to operate in India until it is satisfied with the company’s security measures, including how it plans to address the illegal use of its devices and control data movement.

“Musk is agreeable to give assurances on India security concerns, which includes storing data locally,” one of the sources told Reuters before the meeting.

In addition to the drug smuggling case, Starlink devices have also been found in the hands of insurgents in the northeastern state of conflict-ridden Manipur.

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